Loan Origination

Definition

The entire process of creating a mortgage from application through funding. It's the bureaucratic journey that turns your desperate desire to buy a house into actual dollars.

Example Usage

Loan origination took six weeks from application to funding—typical for a complex transaction with multiple contingencies.

Origin

Banking term used to describe the birth of a loan product

Fun Fact

Loan origination fees (1-2% of the loan amount) are how lenders make money upfront before you start paying interest.

Source: Mortgage Lending Process

Related Terms

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Comparative Market Analysis (CMA)

A valuation method comparing a property to similar recent sales in the area, also known as 'pretending your house is worth what you want it to be.'

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rent-back agreement

An arrangement where sellers continue renting their former home from buyers after closing, usually for a short period. It's the awkward transition period where you're both landlord and confused.

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Value-Add Property

A property purchased below market value where investors improve it to increase returns. A 'fixer-upper' with a business plan and investor-speak.

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rent-free

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Advanced

cost approach

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